The Hallmarks of a Good Auction Property

When exploring the option of adding a property to be listed at auction, its important to consider what might make that particular property suited to the auction process in Malta and Gozo.

Whilst all properties are saleable by auction – from residential property and vacant land through to commercial and industrial real estate – not all property may be best served by being sold at auction, especially if it might only appeal to a narrow market.

Generally, if two of the three parties involved in a property sale – that is the buyers, the seller, and the property itself – are favourable towards auction, then auction is a suitable sales possibility for that property.

Key factors that make a market favourable for property auction:

It has too much relevant product, but buyers are still interested

It is markedly changing

There is a lack of a certain type of property, such as houses of character, ones with a view, or seafront houses

It is an emerging market, where auctioned properties could inspire the sale of other new developments

There is a recognised high demand within the sellers’ market which can inspire competition amongst potential buyers.

Key factors that influence a seller to consider real estate auction:

The seller has experience regarding property auctions, and already possesses the necessary mindset

The seller need to turn over the property in a short period of time,

The seller may have personal lifestyle changes, such as retirement, break-up or relocation, that may require the quick sale of property

The seller is experiencing financial difficulties

The seller knows that an auction will fetch him a fair price

The seller wishes to liquidise his property assets

The seller has already purchased another house

The seller is aware that the property will be sold at a reasonable market price or above

The seller has an existing listing that will soon expire

Key factors that make a property suitable for listing at auction:

It is unique, which may encourage competition amongst interested buyers

It has pre-existing high maintenance costs for the owner

It is vacant, and thus not earning any revenue

It is otherwise difficult to appraise, in terms of suitability of other sales options

It has equity of 25 percent or more.

Selling property through an auction is alternative that provides the benefits of having a specialised agent providing you constant feedback, multiple viewings from a network of 350+ agents and an eventual fair price.